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| Public Act 103-0350 | ||||
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AN ACT concerning employment.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Wage Payment and Collection Act is | ||||
amended by changing Section 13.5 as follows: | ||||
(820 ILCS 115/13.5) | ||||
Sec. 13.5. Primary contractor responsibility for wage
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claims in construction industry. | ||||
(a) For all contracts entered into on or after July 1,
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2022, a primary contractor making or taking a contract in the
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State for the erection, construction, alteration, or repair of
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a building, structure, or other private work in the State | ||||
where the aggregate costs of the project exceed $20,000
shall | ||||
assume, and is liable for, any debt owed to a
claimant under | ||||
this Section by a subcontractor at
any tier acting under, by, | ||||
or for the primary contractor for
the wage claimant's | ||||
performance of labor included in the
subject of the contract | ||||
between the primary contractor and the
owner. This Section | ||||
does not apply to work performed by a
contractor of the federal | ||||
government, the State, a special district, a city, a county,
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or any political subdivision of the State. | ||||
(b) As used in this Section: | ||||
"Construction" means building, altering, repairing, | ||||
improving, or demolishing any structure or building or making | ||
improvements of any kind to real property. | ||
"Primary contractor" means a contractor that has a direct
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contractual relationship with a property owner. "Primary
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contractor" may have the same meaning as a "general
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contractor", "prime contractor", or "construction manager". A | ||
property owner
who acts as a primary contractor related to the | ||
erection,
construction, alteration, or repair of his or her | ||
primary
residence
shall be exempt from liability under this
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Section. | ||
"Private work" means any erection, construction,
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alteration, or repair of a building, structure, or other work. | ||
"Subcontractor" means a contractor that has a contractual
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relationship with the primary contractor or with another
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subcontractor at any tier, who furnishes any goods or services
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in connection with the contract between the primary contractor
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and the property owner, but does not include contractors who
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solely provide goods and transport of such goods related to
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the contract. | ||
(c) The primary contractor's liability under this Section
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shall extend only to any unpaid wages or fringe or other | ||
benefit payments or contributions, including interest owed, | ||
penalties assessed by the Department,
and reasonable | ||
attorney's fees, but shall not extend to
liquidated damages. | ||
(d) A primary contractor or any other person shall not
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evade or commit any act that negates the requirements of this
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Section. Except as otherwise provided in a contract between
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the primary contractor and the subcontractor, the
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subcontractor shall indemnify the primary contractor for any
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wages, fringe or other benefit payments or contributions, | ||
damages, interest, penalties, or attorney's fees owed
as a | ||
result of the subcontractor's failure to pay wages or fringe | ||
or other benefit payments or contributions
as provided in this | ||
Section, unless
the subcontractor's failure to pay was due to | ||
the
primary contractor's failure to pay moneys due to the
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subcontractor in accordance with the terms of their
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contractual relationship. | ||
(e) Nothing in this Section shall supersede or modify the | ||
obligations and liability that any primary contractor, | ||
subcontractor, or property owner may bear as an employer under | ||
this Act or any other applicable law. The obligations and | ||
remedies provided in this Section shall be in addition to any | ||
obligations and remedies otherwise provided by law. Nothing in | ||
this Section shall be construed to impose liability on a | ||
primary contractor for anything other than unpaid wages, | ||
fringe or other benefit payments or contributions, penalties | ||
assessed by the Department, interest owed, and reasonable | ||
attorney's fees. | ||
(f) Claims brought pursuant to this Section shall be done
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so in accordance with this Act. Nothing in this Section shall | ||
be construed to provide a third party with the right to file a | ||
complaint with the Department alleging violation of this | ||
Section. | ||
(g) The following shall be exempt from liability under | ||
this Section: | ||
(1) primary contractors who are parties to a | ||
collective bargaining agreement on the project where the | ||
work is being performed; and | ||
(2) primary contractors making or taking a contract in | ||
the State for the alteration or repair of an existing | ||
single-family dwelling or to a single residential unit in | ||
an existing multi-unit structure. | ||
(h) Prior to the commencement of any civil action, a | ||
claimant or a representative of a claimant shall provide | ||
written notice to the employer and to the primary contractor | ||
detailing the nature and basis for the claim. Failure of the | ||
employer or the primary contractor to resolve the claim within | ||
10 days after receipt of this notice, or during any agreed upon | ||
period extending this deadline, may result in the filing of a | ||
civil action to enforce the provisions of this Act. | ||
(i) Claims brought pursuant to this Section shall be filed | ||
with the Department of Labor or filed with the circuit court | ||
within 3 years after the wages, final compensation, or wage | ||
supplements were due. This subsection does not apply to any | ||
other claims under this Act or any other applicable law | ||
against a primary contractor, subcontractor, or homeowner as | ||
an employer. | ||
(j) Every primary contractor and subcontractor shall post | ||
and keep posted, in one or more conspicuous places accessible | ||
to all laborers, workers, and mechanics at a job site that is | ||
subject to the requirements of this Section, a notice, to be | ||
made available by the Director of Labor, summarizing the | ||
requirements of this Section and information pertaining to the | ||
filing of a complaint. The Director of Labor shall provide | ||
copies of summaries and rules to primary contractors and | ||
subcontractors upon request without charge. One copy of the | ||
notice at a job site shall satisfy the notice requirement for | ||
the primary contractor and all subcontractors. Any primary | ||
contractor or subcontractor who fails to provide notice as | ||
required by this Section shall be subject to a civil penalty, | ||
not to exceed $250, payable to the Department of Labor.
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(Source: P.A. 102-1065, eff. 6-10-22; 102-1076, eff. 6-10-22.)
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Section 99. Effective date. This Act takes effect July 1, | ||
2023.
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